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One bid, no deposit: Auction of Mallya’s private jet postponed

There was only one global bidder for the Airbus A319, and even it did not deposit the Rs 1-crore earnest money. The auction has been put off to June 29-30 now

business Updated: May 12, 2016 01:58 IST
Vijay Mallya,KFA,Kingfisher
File photo of Vijay Mallya’s personal jet.

The service tax department has deferred the auction of liquor baron Vijay Mallya’s private jet to recover Rs 535-crore dues to June 29-30, after just one potential bidder showed interest, an official said.

The auction was earlier scheduled for May 12-13.

The department, which had invited the bidders globally for the auction to get maximum sale price in its attempt to recover dues of Rs 535 crore from Mallya-promoted Kingfisher Airlines (KFA), got only one bidder.

However, even this sole bidder didn’t deposit Rs 1 crore earnest money with Metal Scrap Trade Corporation (MSTC), a government enterprise which is acting as auctioneer, within the scheduled time forcing the date of the auction to be shifted.

“We got only one registration request from the Netherlands government for participating in the bidding of the plane as of May 10. However, it has not deposited the earnest money due to unknown reasons,” a Service Tax Department Official said.

“Therefore, we informed the Bombay High Court about the position and the court has given the department the liberty to adjust the date for auction,” he said, adding “the department discussed the matter with Air India Engineering who are the technical consultants for the auction and MSTC, and decided to hold the auction on June 29-30.”

Manufactured by a US-based Airbus, the 225-seater plane was later converted to 25-seater plane by Vijay Mallya for his personal use. The customised plane is equipped with facilities like bar, washroom, bedroom and conference hall, and has been grounded for three years.

Mallya, who left the country following an uproar over the Rs 9,000 crore default by KFA on bank loans, is facing a non-bailable warrant by a court in India.

First Published: May 11, 2016 22:47 IST